NW Credit Unions Continue to Improve in 2011

This is part of our series on the region’s economic health. All graphs illustrate the results for credit unions in Oregon and Washington. These numbers do not include First Tech FCU, which is now headquartered in California.

Northwest credit unions enjoyed strong growth and profitability in the first quarter of 2011 as return on average assets rose nearly 1 percent in aggregate. As a result, the average net worth ratio for credit unions based in Oregon and Washington held steady at 9.19 percent.

“Despite continued difficulty in the wider economy, credit unions are still stable and sound institutions where consumers can save and get loans at a reasonable rate,” said Association CEO John Annaloro. “Our credit unions continue to invest in their local economies to ensure the Northwest economy recovers.”

It is unusual to see ROA increase, while Net worth ratios hold steady; however, this happened because of the dramatic increase in assets over the course of the year.

It is unusual to see ROA increase, while Net worth ratios hold steady; however, this happened because of the dramatic increase in assets over the course of the year.

Net charge-offs look to be stabilizing and could begin to fall in the months ahead if economic activity heats up as the Federal Reserve Board members continues to forecast. In aggregate, both delinquencies as a percentage of total loans and charge-offs have begun inching downwards over the past four quarters, despite a recent small spike in Oregon.

While balance sheets were healthier, loans fell by 5 percent in the first part of the year, after rising slightly over the past three quarters. This comes at a time when rumblings of another economic downturn are growing.

While balance sheets were healthier, loans fell by 5 percent in the first part of the year, after rising slightly over the past three quarters. This comes at a time when rumblings of another economic downturn are growing.

In spite of this, total assets for Northwest credit unions continued to grow year to date to just over $45 billion.

 

Questions? Contact the Communications Department: 206.340.4815, Editor@nwcua.org.

Posted in Compliance, Economy.